Virtual currency advocates often preach that one day Bitcoin will replace the dollar. But a new study by Swiss bank (UBS) concludes that Bitcoin needs to rise to $ two hundred and thirteen thousand to get the chance.
UBS noted that Bitcoin is neither considered a currency nor a reliable asset. To replace the U. S. money supply of paper money, coins, traveler's checks and so on, prices may have to rise to close to $213000, or else they will have to significantly increase the processing power of the Bitcoin payment network.
Bitcoin prices have fallen 60 percent from their December highs, and Goldman Sachs believes it will fall again on the grounds that "these currencies are not yet in line with any of the three traditional functions of the currency-the medium of exchange, the unit of account, and the storage of value." Goldman Sachs maintained its belief that the previously encrypted currency could not hold the current price, and has confirmed that the phenomenon was "faster than we expected."
At present, the amount of transactions handled by the bitcoin network is minimal compared to the amount paid by companies such as Visa. UBS reported that the limited ability to pay is related to the design of the Bitcoin network and may continue to limit the usefulness of the digital currency. "our conclusion is that Bitcoin is too unstable and too restrictive in its current form to become a means of payment for global transactions or a mainstream asset," the report said.